"The company says it will use incentives, “such as promotions for Drivers and consumers, to attract platform users on both sides of our network.” That means giving drivers a larger share of fares and cutting prices for passengers. The result, the prospectus says, will be “a negative margin until we reach sufficient scale to reduce incentives.” In other words, Uber will lose money until it has pricing power over the marketplace, if that ever happens.

Another worrisome aspect of Uber’s business is that it’s highly concentrated. About 24% of its ride bookings come from only five metropolitan areas — Los Angeles, New York, San Francisco, London and Sao Paolo, Brazil. Some of those communities already have placed or are considering surcharges on Uber rides or imposing minimum-wage standards. New York has capped the number of ride-hailing permits. Uber desperately needs to expand into new regions, but that’s where its reputation for bullishness and boorishness precedes it."